BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Sep 28, 1973
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September 28, 1973 Mr. Benjamin Bautista Silay City S i r : This refers to your letter dated September 6, 1973 requesting a ruling whether the proposed transaction whereby you intend to transfer to agricultural farms to the BJB Agro-Industrial Company, Inc. of Silay City in exchange for shares of stocks of the said corporation, will entitle you to exemption from the capital gains tax. In reply, I have the honor to inform you that, under the foregoing transaction, the gain (fair market value of the property less the acquisition thereof) to be derived by you is exempt from the capital gains tax, pursuant to Presidential Decree Nos. 16 and 16-A, it appearing that the corporation is engaged in agricultural development projects. (Section 4.A.8., Revenue Regulations No. 7A-72 dated November 16, 1972). It is understood that the corporation will issue in your favor new issues of capital stocks. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."
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